The City of El Cerrito, while initially agreeing with some of the State Auditor’s recommendations, has shown a lack of commitment in implementing these suggestions, particularly in managing its financial struggles. The city’s budgets have consistently shown increased expenditures without justifying the rises, and its budget policy lacks clear procedures for monitoring departmental spending. This oversight includes the absence of reports that compare budgeted and actual expenditures and holding departments accountable for any variances. Furthermore, the finance department frequently bypasses budgetary controls, allowing departments to exceed their allocated budgets, undermining the purpose of balanced budgeting.
City management’s inconsistent reporting further complicates matters. They shifted from monthly to quarterly budget reports in September 2020, and even these reports lack the detail needed for effective departmental spending control. This inconsistency is partly due to the absence of a comprehensive financial recovery plan, which is crucial for coordinated cost reduction and building a sufficient financial reserve.
Despite attempts to reduce spending, El Cerrito’s efforts fall short of addressing its financial woes. Temporary measures like deferring cost-of-living increases for employees only postpone necessary actions against escalating costs. Future budgets lack clarity on how the city plans to achieve the necessary savings for proposed reductions.
El Cerrito’s fiscal challenges are exacerbated by its high employee costs, which constitute about 75% of the city’s expenses. Notably, many departments have a higher staffing ratio per capita compared to most other cities in Contra Costa County and the state. During this financial crisis, the city also approved discretionary salary increases for its fire department battalion chiefs, pushing their salaries above the average maximum for similar roles in neighboring cities. This decision highlights the city’s ongoing struggle to balance its financial priorities and implement effective cost-saving measures.
The City must acknowledge the urgency of its financial crisis. Over two years ago, the State Auditor outlined these recommended actions:
- Develop and adopt a financial recovery plan that addresses the city’s overspending and specifies the corrective action it will undertake to ensure accountability in its fiscal recovery process.
- The plan should identify the city’s goals and intended corrective actions, the prioritization of its resources, and individuals responsible for monitoring its progress in implementing each action, and it should outline when the city anticipates completing key milestones related to each action.
- City management should also inform the city council on a quarterly basis of its progress in implementing the plan.
- Document the assumptions and data used to develop each department’s projections of revenue and expenditures for the fiscal year and provide this information to the city council during the budget approval process.
- Present monthly updates to the city council on the status of departmental budgets and promptly seek approval from the city council of proposed budget adjustments when warranted.
- City management should prepare and provide supporting documentation to justify any proposed budget increases.
- Conduct analyses of its management and staff positions that address their responsibilities, reporting relationships, and total compensation packages compared to similar positions in comparable cities to identify inefficiencies and overlapping areas of responsibility. ECCRG’s words: This is possible with a Classification and Compensation study, but the City could use the study as a basis for increasing salaries while disregarding other recommendations.
- Based on these analyses, El Cerrito should pursue opportunities to consolidate positions and reduce personnel expenditure
The State Auditor provided the City with a road map. Has anyone else wondered why the City has yet to implement these recommendations?
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for meaningful change.
Here is how you can help:
- Share this post with other residents.
- Comment on the post
- Attend the monthly Financial Advisory Board meetings in person.
- Post on Next Door
- Voice your concerns with the Council.
- Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members or the City Managers, all their emails are below:
- Karen Pinkos-City Manager kpinkos@ci.el-cerrito.ca.us
- Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us
- Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us
- Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us
- Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us
- Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
El Cerrito Committee for Responsible Government (ECCRG) 